The document summarizes infrastructure proposals from the Union Budget of India for 2017-2018. Key allocations included Rs. 3,96,135 crore for infrastructure, Rs. 1,31,000 crore for railways, Rs. 64,000 crore for highways, and Rs. 1,800 crore for airways. Proposals focused on expanding rail, road, air and renewable transportation networks as well as developing smart cities, rural internet access, and affordable housing. The budget aimed to boost infrastructure development to support economic growth through investments and incentives across various sectors.
2. INTRODUCTION:
• Finance Minister Arun Jatiley presented the
Union Budget 2017-2018 in Lok Sabha on Feb
1st, 2017. This is the fourth budget by the
Narendra Modi government.
• It can be said that most of the government plans
for this fiscal year focused towards digitization
fighting the issue taxation and also helping the
rural population.
• Union finance minister Arun jetiley on
Wednesday allocated a record Rs 3,96,135 crore
to the infrastructure sector.
6. PROPOSALS: RAILWAYS-2017
•Total allocation for railways is
Rs.1,31,000 crore.
•Total capital and developmental
expenditure Rs.1.31lakh crore for
railways in 2017-18. including
Rs.55,000 crore to be provided by
govt.
• A new metro rail policy will be
7. PROPOSALS: ROAD TRANSPORT-
2016
• Total investment in the road sector,
including PMGSY allocation, would be
97,000 crore during 2016-17.
• Allocation of ` 55,000 crore in the Budget
for Roads.
• Additional 15,000 crore to be raised by
NHAI through bonds.
8. PROPOSALS: ROAD TRANSPORT-
2017
• INR 64,000 crore allocated for highways.
• Rs. 27,000 crore to be spent on roadways.
• Jaitely said 2000 km constant connectivity
roads have been identified.
• He said that 133 km roads per day were
constructed under PMGSY against 73km in
2011-14.
9. PROPOSALS: AIRWAYS-2016
• Allocated Rs.1,713 crore to airlines
against a demand of Rs.3,911 crore.
• Jaitely has announced a 2% hike in
service tax, making first and business
class travel more expensive.
10. PROPOSALS: AIRWAYS-
2017
• Government-owned airline has been
allocated Rs.1,800 crore.
• Air India had asked for Rs.2,844 crore as
equity from the Govt. for the fiscal year
starting April 2017.
• As part of this planned equity infusion, the
carrier has so far received 24,000 crore
from the Govt.
• The carrier posted an operational profit of
Rs.105 crore.
• However, in the ongoing financial year, the
airline has reported combined losses over
11. PROPOSALS: REAL ESTATE-
2016
• Deduction from tax on profits fro a
hosing project for flats up to 30 square
metres in 4 metros and 60 square
metres in other cities.
• Deduction for the additional interest of
Rs.50,000 p.a. for loans up to Rs.35
lakh.
• Exemption from service tax on
construction of affordable houses up to
60 square metres.
12. PROPOSALS: REAL ESTATE-
2017
• 10 million homes to be built by 2019
for the homeless and those living in
kutcha houses.
• Holding period for immovable assets
reduced from 3 years to 2 years.
• NHB will refinance individual housing
loans of about INR 200 billion.
14. PROPOSALS: RURAL & URBAN
DEVELOPMENT-2017
• High speed Internet to be allocated to
1,50,000 gram panchayats.
15. PROPOSALS:POWER NEW &
RENEWABLE ENERGY-2016
Ultra Mega Solar Power Projects in
Rajasthan, Gujarat, Tamil Nadu, and
Laddakh in J&K.
Scheme for solar power driven
agricultural pump sets & water pumping
16. PROPOSALS:POWER NEW &
RENEWABLE ENERGY-2017
• Crude oil strategic reserves to be set up in
Odisha and Rajasthan.
• INR 1,26,000 crore received as energy
production based investments.
• Trade infra export scheme to be launched
2017-18.
17. Review
• “It has comprehensively addressed all areas of
socio-economic priority: farmers, poor and
under-privileged sections of the society,
infrastructure development and strengthening of
the financial sector. The Finance Minister has
rightly prioritized investment in infrastructure
and rural economy, with a focus on inclusive
growth and capacity building”
• - Chanda Kochhar, MD and
CEO,
18. “One of the key demand of the real estate
sector has been to get industry status to get
preferential and lower borrowing rates from
banks. This announcement will surely
provide ample push for the affordable
housing sector in India, a key initiative
under housing for all.”
-Pro equity CEO and Founder
Samir Jasuja.
19. “Clubbing Union budget and
Railway budget and bringing them in
February is a drama”.
-Mayawati, BSP
president.
20. IMPACT:
• Better days ahead for road construction
firms by way of fresh tenders and road
projects.
• In railways, companies that carry out
civil works and offer track-laying and
electrification services will benefit .
• Incentives for affordable housing can set
up supply and rational prices and lower
finance cost can improve project
viability.
• Cement and steel sector should do well
if infrastructure does well.
21. Conclusion
•To conclude budget 2017
provides an opportunity to the
government to give an impetus
to the infrastructure sector,
which has been and will
continue to be one of the pillars
of economic growth and
